Question

Pell Manufacturing is preparing its direct labor budget for May. Projections for the month are that 33,400 units are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $12, what is the total budgeted direct labor cost for May

Answer 1

Step-by-step explanation:

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Answer 2

Direct labor cost= $1,202,400

Step-by-step explanation:

Giving the following information:

Projections for the month are that 33,400 units are to be produced and that direct labor time is three hours per unit. The labor cost per hour is $12.

First, we need to calculate the total amount of direct labor hours required:

Total numbers of hours= 33,400 units*3= 100,200 hours

Now, we can calculate the total cost:

Direct labor cost= 100,200*12= $1,202,400